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Hammadi Holding (SAU:4007) Gross Margin % : 32.87% (As of Mar. 2024)


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What is Hammadi Holding Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hammadi Holding's Gross Profit for the three months ended in Mar. 2024 was ﷼91 Mil. Hammadi Holding's Revenue for the three months ended in Mar. 2024 was ﷼277 Mil. Therefore, Hammadi Holding's Gross Margin % for the quarter that ended in Mar. 2024 was 32.87%.


The historical rank and industry rank for Hammadi Holding's Gross Margin % or its related term are showing as below:

SAU:4007' s Gross Margin % Range Over the Past 10 Years
Min: 28.02   Med: 37.1   Max: 43.89
Current: 34.96


During the past 10 years, the highest Gross Margin % of Hammadi Holding was 43.89%. The lowest was 28.02%. And the median was 37.10%.

SAU:4007's Gross Margin % is ranked worse than
58.2% of 610 companies
in the Healthcare Providers & Services industry
Industry Median: 41.51 vs SAU:4007: 34.96

Hammadi Holding had a gross margin of 32.87% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Hammadi Holding was 6.70% per year.


Hammadi Holding Gross Margin % Historical Data

The historical data trend for Hammadi Holding's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hammadi Holding Gross Margin % Chart

Hammadi Holding Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.01 33.09 38.24 37.39 36.81

Hammadi Holding Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40.25 33.28 37.90 35.49 32.87

Competitive Comparison of Hammadi Holding's Gross Margin %

For the Medical Care Facilities subindustry, Hammadi Holding's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hammadi Holding's Gross Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Hammadi Holding's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hammadi Holding's Gross Margin % falls into.



Hammadi Holding Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Hammadi Holding's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=433.1 / 1176.764
=(Revenue - Cost of Goods Sold) / Revenue
=(1176.764 - 743.62) / 1176.764
=36.81 %

Hammadi Holding's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=91.1 / 277.04
=(Revenue - Cost of Goods Sold) / Revenue
=(277.04 - 185.983) / 277.04
=32.87 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Hammadi Holding  (SAU:4007) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Hammadi Holding had a gross margin of 32.87% for the quarter that ended in Mar. 2024 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Hammadi Holding Gross Margin % Related Terms

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Hammadi Holding (SAU:4007) Business Description

Traded in Other Exchanges
N/A
Address
Al-Olaya, P.O. Box 10112, Riyadh, SAU, 11443
Hammadi Holding is engaged in the activities of wholesale and retail trading of medical equipment, pharmaceutical and cosmetic products, establishing, managing, and operating hospitals and medical centers, wholesale and retail trading of food and beverages, purchasing and rentals of lands for construction buildings and investing, initiating commercial centers, operating and maintaining them. The operating segment of the company are Medical Services and Pharmaceuticals Products segment. It generates maximum revenue from the Medical Services segment. The Medical Services segment includes fees for inpatient and outpatient services.

Hammadi Holding (SAU:4007) Headlines

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